Price of vegetables, dairy products drop in Georgia

The cost of some basic food items in Georgia is dropping thanks to a slight fall in the monthly inflation rate.

The news is being welcomed after the price of goods (alcoholic and non-alcoholic drinks, and transport) slowly crept up in recent months.

Today, the National Statistics Office of Georgia, Geostat, revealed in April 2015, the monthly inflation rate in Georgia reached 0.3 percent, while the annual inflation rate equalled 2.5 percent.

This was a reduction on March figures, where the monthly inflation rate reached 1.2 percent and the annual inflation rate equalled 2.6 percent.

Geostat data revealed food and non-alcoholic beverages, alcoholic drinks and transport were the groups that were mainly responsible for the formation of the inflation rate in March.

However in the past month the cost of milk, cheese, eggs dropped by 2.7 percent and vegetables were found to be 2.6 percent cheaper.

Transport: In April 2015 prices increased 1.8 percent; therefore, the contribution of the group to the monthly inflation rate amounted to 0.2 percentage points. Prices rose for transport services (1.7 percent) and operation of personal transport equipment (2.1 percent);

Alcoholic beverages, tobacco: In the reporting period the cost of items in this group increased 1 percent, contributing 0.06 percentage points to the overall monthly index. Price increases were recorded for the subgroup of alcoholic beverages (1.7 percent);

Food and non-alcoholic beverages: The cost of items in this group decreased 0.3 percent, which contributed -0.08 percentage points to the overall monthly inflation. Prices were down for milk, cheese and eggs (-2.7 percent) and vegetables (-2.6 percent), while the cost of fruit and grapes increased (5.2 percent).

Meanwhile, year-on-year, a price reduction was observed regarding milk, cheese, eggs, vegetables and transport.

The annual inflation rate was mainly formed by price changes for the following groups:

Food and non-alcoholic beverages: Prices increased 2.7 percent over a year, contributing 0.84 percentage points to the overall inflation rate. Costs significantly increased for the following subgroups: fruit and grapes (29.2 percent), coffee, tea and cocoa (6.8 percent), oils and fats (6.1 percent), sugar, jam, honey, chocolate and confectionery (5.5 percent). Prices decreased for vegetables (-6.2 percent) and milk, cheese and eggs (-3 percent);

Health: Health-related costs increased by 6.4 percent, contributing 0.65 percentage points to overall inflation. In the group, prices rose for medical products, appliances and equipment (8.9 percent), out-patient services (5.6 percent) and hospital services (4.6 percent);

Alcoholic beverages, tobacco: Prices increased by 11 percent with the relevant contribution of 0.56 percentage points to the overall inflation. Increased prices were observed for alcoholic beverages (11.6 percent) and for tobacco (10.3 percent);

Transport: Prices regarding items in this group dropped 5.1 percent, contributing -0.60 percentage points to the annual inflation rate. Costs declined for operation of personal transport equipment (-9.6 percent).